Stakeholder pressure and circular supply chain practices: Moderating roles of environmental information exchange capability and circular innovation orientation

Abstract

This study deploys institutional theory and Resource orchestration theory (ROT) to examine the roles supply chain stakeholder pressure, circular innovation orientation (CIO) and environmental information exchange capability (EIEC) play in adopting Circular supply chain (CSC) practices. This study uses a partial least square structural equation modelling (PLS‐SEM) to analyse survey data gathered from 290 managers of manufacturing Small and medium enterprises (SMEs) in Ghana. This study finds that pressure from supply chain stakeholders substantially drives manufacturing SMEs' CSC practices. This study confirms that EIEC negatively moderates the relationship between supply chain stakeholder pressure and CSC practices. Finally, this study confirms the complementarity between CIO and EIEC through moderating effects between supply chain stakeholder pressure and CSC practices. This study advances circular supply chain management (CSCM) literature by testing a research framework that examines important but rarely studied roles of CIO and EIEC in SMEs' CSC practices adoption under supply chain stakeholder pressure through institutional and resource orchestration perspectives.